20 May 2019

Mixed signals after 3 mobile carriers gain 4G licenses

The time has finally come and the mainland authorities have at last granted long-awaited 4G licenses. China Mobile (00941.HK), one of the three main carriers, was granted a TD-LTE license, while rivals China Unicom (00762.HK) and China Telecom (00728.HK) have received TD-LTE and FDD LTE licenses from the Ministry of Industry and Information Technology.

China Mobile gained as much as 2 percent on the news, before ending 0.90 percent higher for the day, but China Unicom dipped 0.33 percent and China Telecom was down 1.93 percent.

Meanwhile, the Hong Kong stock was weighed down by investor worries that the U.S. Federal Reserve will taper its bond buying program sooner than expected. The Hong Kong benchmark Hang Seng Index fell 181 points, or 0.76 percent, to 23,728.

The Hang Seng China Enterprises Index, the main gauge for H shares, ended 0.70 percent lower to close at 11,368, while the Shanghai Composite Index closed 1.31 percent higher at 2,251 points.

Tingyi Holding Corp. (00322.HK), known for the Master Kong instant noodle brand, is considering buying instant food businesses locally or overseas to boost growth after annual sales expanded at the slowest pace in eight years. The news has put pressure on the counter, which ended 1.7 percent lower for the day.

Shipping plays reflected increases in the Baltic Dry Index, the gauge of bulk shipping freight rates. China COSCO (01919.HK) was up 2.7 percent and China Shipping Development (01138.HK) rose 4.2 percent.

Magnetic strip card manufacturer Goldpac Group (03315.HK) has its debut on Wednesday. The counter jumped as soon as the market opened, and ended 26 percent above its offering price.

– Contact the writer at [email protected]



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